Georgia has a standard VAT rate of 18%
that applies to certain taxable transactions, depending on the business field and the commercial activity of the Georgian company. The Value Added Tax (VAT)
is just one of the applicable taxes for companies in Georgia
and certain taxpayers in the country must be registered for VAT purposes
. The registration for VAT can be voluntarily and it is also compulsory in certain cases.
Certain activities are regarded as taxable transactions and they are subject to the 18% VAT rate.
- the supply of gods or services produced and delivered on Georgian territory,
- the transfer of goods and services for non-economic purposes (if the taxpayer has a VAT credit for these goods or services),
- the transfer of goods or services in exchange for shares in a Georgian legal entity or partnership,
- the supply of goods or services by a taxpayer to its employees,
- the export of goods outside Georgia,
- the import of goods into Georgia.
The standard VAT rate in Georgia is 18% for all imports and taxable transactions, unless otherwise defined in a specific agreement or provision. Some transactions are exempt from the tax without the right to reclaim input VAT. Our company incorporation agents in Georgia can give you complete details regarding the VAT obligations for each business activity.
VAT registration in Georgia
A company in Georgia
can become a VAT payer
if it is registered voluntarily for this purpose or if its activity falls into the category of businesses that must register for VAT purposes. Compulsory VAT registration
is required for:
- taxpayers who, within 12 months perform economic activities that have a accumulated value of VAT taxable transaction that exceeds 100,000 GEL;
- companies that produce or import excisable goods into Georgia;
- legal entities established after a reorganization.
Other conditions for registration may apply. Our company incorporation agents in Georgia can tell you more about other cases in which VAT registration is compulsory. Also, we can help you submit the necessary documents for VAT registration at the Georgian Tax Authorities.